USDT-Margined Futures contracts on BTCEX Futures are not inverse contracts. Instead, they are linear futures products that are quoted and settled in USDT-stablecoins pegged to the value of the U.S. dollar.
One of the key benefits of USDT-Settled contracts is that you can easily calculate your returns in fiat. This makes USDT-Margined contracts more intuitive. For example, when you make 500 USDT in profit, you can easily estimate that the profit is worth approximately $500 - since the value of 1USDT is pegged closely to 1 USD.
USDT-Margined contracts offer the following characteristics:
- Settlement in USDT: Contracts are denominated and settled in USDT.
- Expiration: Perpetual and Quarterly
- Clear pricing rules: Each USDT-Margined futures contract specifies the base asset's quantity delivered for a single contract, also known as "Contract Unit." For instance, BTC/USDT, ETH/USDT, and BCH/USDT futures contracts represent only one unit of its respective base asset, similar to spot markets.
- Funding fee: USDT-Margined Perpetual contracts carry a funding fee. Funding payments are transferred between traders and are charged every eight hours.
Minimum order notional limit rule for USDT-Margined futures contracts:
The minimum notional value of each order must be no less than the threshold of 0.001 BTC. If the order notional value is less than the set threshold (0.001 BTC x price), it will be rejected.
For example, if the user opens an order of 0.001 BTC notional value, the order can be successfully placed; if the user opens an order < 0.001 BTC notional value, the order will be rejected.
Note: BTCEX Futures will adjust the minimum order threshold from time to time without prior announcement, and users can check via API for details.